Just over a year ago, the Thornburg Core Plus Bond ETF (TPLS) and the Thornburg Multi Sector Bond ETF (TMB) made their debut. The launches came in a year that saw a record number of active ETFs hit the market (almost 1,000, per Morningstar).
Fixed income investors have been basking in the sunlight of higher yields the past few years amid the Fed's aggressive rate-hiking cycle. Fast forward to now, with the Fed instituting its second rate cut of the year.
Given how uncharacteristically telegraphic the Federal Reserve has been with interest rate policy decisions as of late, it didn't surprise the markets that it cut the federal funds rate by 25 basis points for a second time in 2025.
The Fed instituted the first rate cut of the year and there are potentially more to come before 2025 turns into 2026. This puts fixed income investors on alert to ensure they properly position their portfolio for this shifting interest rate environment.
The U.S. Federal Reserve today implemented an interest rate cut of 25 basis points. The question remains: Just how aggressive will they be the rest of the year and beyond?